German court says euro zone's crisis fund is legal

The highest court in German upheld a 2012 ruling on Tuesday, confirming the legality of the euro zone's new, permanent crisis defense mechanism.

Spain Sale Improves Funding Prospects

Spain's ailing finances got a needed boost Thursday from the sale of long-dated debt, much of it to foreign buyers, clearing the biggest hurdle for the country since the European Central Bank signaled two weeks ago that it stood ready to buy bonds of fiscally frail euro-zone members.

Spain 2-Year Yield Drops Most in 2012 on ECB Buying Speculation

Spanish two-year notes rose this week, pushing down yields the most since December on speculation the European Central Bank will buy shorter-maturity government securities to help quell turmoil in the region’s debt markets.

Players in a Greek Drama

Not only does he have the power to effectively put a “sell” on Uncle Sam, but on Friday he roiled global markets after he said the Greek rescue package would constitute a limited default on the country’s debt.

The analyst, who is based in London, oversees the 30-person government bonds team inside Fitch Ratings, which could soon downgrade the debt of the United States government from its historical, gold-plated, triple-A rating if politicians in Washington cannot agree to raise the debt limit.

Euro Drops to Lowest Level in Seven Weeks Against Dollar Amid Greek Crisis

The euro dropped to a seven-week low versus the dollar as Greece moved closer to defaulting on its obligations, bolstering concern the region’s sovereign-debt crisis is worsening.

The yen reached its strongest level versus the euro since the Group of Seven nations intervened in March to curb its gains after a record earthquake. Greece’s debt rating was cut by Fitch Ratings. Spanish voters may defeat Prime Minister Jose Luis Rodriguez Zapatero’s Socialists, who have cut spending to fight the debt crisis, in regional elections Sunday, polls show.